The Manchester CATS service is due to commence in Winter 2008 and is intended to provide extended primary care services in a number of key specialties for patients in Greater Manchester. The contract is expected to require total capital investment of around £13m.

The PHG contract is to provide a range of elective surgical procedures at a newly refurbished treatment centre to be located within the Royal South Hants Hospital in Southampton. The facilities will be leased from Southampton City PCT. The contract will require investment of approximately £5m, all of which will be funded by PHG from internally generated cash flows.

Mike Parish, Chief Executive of Care UK said: "We are delighted to continue working in partnership with the NHS, and particularly with the Primary Care Trusts with whom we have developed close working relationships. Both the Manchester and Southampton services will provide convenient, high quality services for NHS patients, building on our existing experience as members of the NHS family."

The group is pleased to note that the DoH has indicated that Care UK's two Manchester CATS projects and Partnership Health Group's ISTC in Southampton are proceeding towards financial close.

The Essex ISTC contract has now been transferred to local ownership. We believe that the management of the Essex ISTC contract by the local commissioning authorities is a positive step. However, a significant number of issues remain to be resolved in order for this project to reach financial close. We continue to work closely with the local Trusts to achieve this.

Interim results for the six months ended 31 March, 2008 are expected to be announced on 19 May, 2008. Should any of the ISTC contracts reach financial close prior to this, we will make the appropriate announcement.

The services to be provided by Care UK will include specialist assessment and diagnostic procedures along with a range of minor surgical treatments at three community-based centres within the Greater Manchester area. The services for this substantial and important five-year project are expected to commence towards the end of calendar year 2007 and will involve capital investment of around £12m.

Mike Parish, Chief Executive of Care UK, said:

"We are delighted that we have been appointed as preferred bidder on this innovative project. As we indicated in our recent preliminary results announcement, we continue to be involved in local and national discussions on a number of key initiatives and the CATSS project represents a further step for Care UK in working with the Department of Health and Primary Care Trusts to deliver significantly improved NHS acute and community services."